[Follow live news updates on the fraud trial of Elizabeth Holmes.]
In 2018, the United States charged Elizabeth Holmes and her business partner, Ramesh “Sunny” Balwani, with nine counts of telephone fraud and two counts of conspiracy to commit electronic fraud.
The indictment accuses the couple of engaging in a “conspiracy, scheme and technique to defraud investors on an important matter”.
In other words, they were accused of lying about Theranos business and technology for money. The lies outlined in the indictment include statements made by Theranos about their relationship with the military and the status of their partnership with Walgreens. Prosecutors also said that Theranos forged demonstrations of its technology and forged authentic reports from pharmaceutical companies and the financial health of the businesses.
Electronic fraud is a felony that carries a maximum penalty of 20 years and carries a fine. Theranos also paid a $500,000 fine to settle civil securities fraud charges with the Securities and Exchange Commission in 2018. It has also settled numerous lawsuits with investors and partners before its dissolution that year.
Since the criminal indictment, the cases of Ms Holmes and Mr Balwani have been separated. Mr. Balwani is due to appear in court next year. Furthermore, some of the charges against Ms Holmes were dropped and others added. As of today, Ms Holmes faces 11 counts of fraud and conspiracy to commit fraud.
She pleaded not guilty.